In September 2022, the World Bank made a significant adjustment to the International Poverty Line (IPL). This change has implications for our understanding of global poverty. Let’s delve into the details.
The Shift from $1.90 to $2.15
What Changed?
- The IPL, which previously stood at $1.90 per day, now stands at $2.15 per day.
- However, the real value of this line remains relatively constant. The shift is due to changes in the units used to express poverty data.
Understanding International Dollars (Int-$)
- The old figure (1.90) was expressed in 2011 international dollars (Int-).
- The new figure (2.15) is expressed in 2017 international dollars (Int-).
- Inflation over time means that one 2017 Int-buys less than one 2011 Int-in terms of goods and services.
Impact on Poverty Estimates
- Using the updated methodology, the global extreme poverty rate for 2019 decreased marginally from 8.7% to 8.4%.
- This translates to 20 million fewer people living in extreme poverty, bringing the total to 648 million.
Long-Term Trends
- Over recent decades, the updated methodology shows a slightly faster decline in poverty.
- Looking back to the 1990s, estimates using the updated methodology indicate around 80 million more people in extreme poverty.
Conclusion
The adjustment to the International Poverty Line reflects the evolving economic landscape. While the number has changed, the underlying value remains consistent. Eradicating extreme poverty by 2030 remains a global goal, and understanding these nuances helps us address this critical challenge12.
Keywords:
- Poverty
- International Poverty Line
- World Bank
- Extreme poverty
- Global population
- Income threshold
Hashtags:
- #EndPoverty
- #GlobalGoals
- #EradicatePoverty
- #WorldBank
- #IncomeEquality
- #GlobalJustice
